Supplier Invoices
Overview
Workday Supplier Management supports the processes and information necessary to effectively manage your vendors while providing comprehensive supplier information to people across your organization. Supplier Management uses web-based business communication, transaction processing, and settlement options to:
- Efficiently process supplier invoices.
- Manage payables and settlement.
- Provide cash optimization.
- Maintain strong internal controls with insight into all aspects of enterprise spend.
Objectives
By the end of this chapter, you will be familiar with the following:
- Identify the required security groups necessary for supplier invoice and supplier invoice adjustment creation.
- Review a supplier account.
- Create a supplier invoice and invoice adjustment, and review the accounting for both documents.
Security Groups
- Supplier Administrator: This user-based security group creates and maintains all supplier data, including suppliers and supplier groups, regardless of organization.
- Accounts Payable Data Entry Specialist: This role-based security group performs the majority of the transactions performed within Workday Supplier Management, including: supplier invoice and supplier adjustments. Assign this role at the company or company hierarchy level.
- Accounts Payable Analyst: This role-based security group views reports and transactions related to supplier accounts for analysis and reporting. Assigned occurs at the company or company hierarchy level.
Domains
Topic | Functional Area | Domain |
|---|---|---|
Account Posting Rules | Common Financial Management | Set Up: Accounting Rules |
Supplier Invoice | Supplier Accounts | Process: Supplier Invoice - Cancel Process: Supplier Invoice - Change Process: Supplier Invoice - Core Process: Supplier Invoice - Reporting View: Supplier Invoice View: Supplier Invoice Request |
Business Processes
- Supplier Invoice Event
Supplier Setup
A supplier is a business entity from whom you purchase goods or services. Workday allows you to set up and maintain your entire set of vendors. Supplier requests streamline the supplier creation process, providing necessary segregation of duties. There are different ways to set up your suppliers depending on what they provide and how they provide the goods or services you purchase. Supplier-related setup tasks vary, depending on the type of supplier.
Tip
: Workday customers can create a branded, external website for supplier self-registration. Suppliers then create a sign-in, enter contract information, attach supporting documentation, and specify the goods and services they provide.Supplier Categories
Accounting categories, such as supplier categories, are a way to logically group similar account-related objects together for posting, searching, and reporting purposes. Assign suppliers to a supplier category to facilitate organizing them, searching for them, and reporting. For example, supplier categories may include: IT Distributers, Office Supply Distributer, Food and Beverage Distributor, etc.
All suppliers must have one, and only one, supplier category. You may also use supplier categories when selecting or searching for suppliers, and defining account posting rules.
Supplier Group
Supplier groups are a way to organize suppliers of different goods and services into any groups that you find useful. Note that a supplier can be part of multiple supplier groups. Use supplier groups for reporting and selection. Groups are also available for you to use in account posting rules. Workday discourages this practice since each supplier can have multiple groups. An example of supplier groups might include Suppliers A-L and Suppliers M-Z.
Supplier Category Spend
|
Customer
|
Revenue | Supplier Group Purchase Item
|
Customer
|
Sales Item |
|---|---|
Required | Optional |
One | Zero to Many |
Search | Search |
Report | Report |
Account Posting Rules* | Account Posting Rules? |
Spend Categories and Purchase Items
Spend Categories
Spend categories are another type of accounting category that are used to logically group similar account-related objects together for posting, searching, and reporting purposes. All invoices must have a spend category, and all items that you can track must have a spend category. Additionally, place spend categories in a spend category hierarchy to simplify procurement and expense searches and for reporting and analytics. A single spend category can exist in multiple hierarchies to prevent the creation and maintenance of duplicates.
Create spend categories to classify assets, expense items, purchase items, and supplier catalog items. Spend categories drive the accounting that connects the asset, item, or service to the appropriate ledger account. You can define categories to fit your needs or follow the standard UN/SPSC or NIGP code classification hierarchy. You can also use a combination by defining your own spend categories and mapping them to standard commodity and services codes.
You can also define how you use a spend category by selecting the Spend Category usage types below for the spend category:
- Ad Hoc Payment: You can use these spend categories on ad hoc payments.
- Expense: Associate these spend categories to an expense item.
- Procurement: You can use these spend categories on Purchase Items, Purchase Orders, Requisitions, Receipts, Returns, and Supplier Contracts.Note: Workday automatically includes the Supplier Invoice spend category usage after you save the spend category with Procurement usage.
- Supplier Invoice: You can use these spend categories on Supplier Invoices, Supplier Invoice Adjustments, and Recurring Supplier Invoices.Note: Additional consideration is necessary for Inventory when setting up spend categories since you use them to enable associated items for stocking.
From the Spend Category Detail screen, you can select Asset Tracking if items will become business assets. Additionally, you can use spend categories to enable associated inventory items to be stock items.
Purchase Item Groups
You can group purchase items to facilitate searching, item selection, and reporting. An item might belong to more than one purchase item group. For example, a laptop could belong to both the office supplies and the laptops and desktops purchase item groups.
You can either assign purchase items to item groups, or assign a group to an item when creating the item.
Purchase Items
Purchase items are goods and services that are not associated with any supplier or supplier contract. In this way, they differ from supplier catalog items.
Tip
: You share spend categories, purchase items, and groups and suppliers with Workday Financial Management, Expenses, Workday HCM, and Procurement. These applications use the spend categories for a variety of different purposes. Involve representatives from accounting, finance, and operations in the initial design sessions for any shared functionality.Spend Category Supplier | Customer | Revenue | Purchase Item Group Supplier | Customer | Sales Item |
|---|---|
Required | Optional |
One | Zero to Many |
Search | Search |
Report | Report |
Account Posting Rules | Account Posting Rules? |
Supplier Invoice and Adjustment
Supplier Invoice
Workday optimizes transactions for paperless operation from receipt of supplier invoices through electronic payments to maximize processing efficiency.
Supplier Invoice
is a business process. As such, your requirement regarding segregation of duty, approval, or review tasks exists within Workday.Invoicing works seamlessly with procurement to support standard two- and three-way matching, as well as with financial accounting for appropriate accruals and accounting.
The following are ways in which you can create supplier invoices:
- Without Purchase Order
- From Purchase Order
- From Receipts
- From Timesheets
- From Task Logs
- Manually
You can manage supplier invoices after you submit the invoice. You can use the following tasks to manage supplier invoice workflow:
Task | Description |
|---|---|
Cancel | Cancel invoices and invoice adjustments not yet paid. |
Change | Change a submitted invoice or adjustment you have not yet paid. |
Correct | Finance Administrators can correct the supplier invoice after you submit it. |
Approve, Enrich, Revise | Route the supplier invoice for approval by adding an approval step to the Supplier Invoice Event business process. Allow a user to change the supplier invoice during the approval step. |
Hold | Make the invoice unavailable for payment. |
Supplier Invoice Adjustment
You can create a supplier invoice adjustment, commonly known as a credit memo, that decreases your liability to the supplier. You can also create an adjustment that increases your liability. You do not need to reference an existing supplier invoice. However, if you do, the invoice and adjustment will be connected objects.
Recurring Supplier Invoices
Recurring supplier invoices allow you to model recurring payments for things like rental agreements and leases. Intervals are fully configurable. You can track and report consumption amounts.
Define a supplier invoice template to create supplier invoices for goods and services your company incurs regularly. Determine whether recurring supplier invoices have fixed or variable installment amounts.
Note
: This is a two-part process. Setting up a recurring supplier invoice template on its own will not generate an invoice. Once you have set up a recurring supplier invoice, you must then create an invoice referencing the template. You can do this manually or automatically using a scheduler.Supplier Contracts
Supplier contracts enable you to deploy and leverage your company procurement policies. You can:
- Define preferred suppliers.
- Deploy contractual terms and amounts.
- Gain visibility to better negotiate discounts and other terms with suppliers.
- Analyze contract spend for better control and standardization.
Create supplier contract types to identify the business documents for the contract and specify other requirements. Specify supplier contract line details for goods, services, or project-based lines. Set up purchase order or supplier invoice schedules and installments for supplier contracts, or manually create supplier invoices or purchase orders from installments.